Sales Tax Instructions

Sales

SalesTaxInstructions, 2009 2. As regards your request for installment facility, you may approach the Additional Collector Incharge, Collectorate of SalesTax, Hub. [Issued by the C. B. R. Islamabad, under the signature of Mr. Abdul Razzaq, Secretary (STP), addressed to M/s. Mandviwalla Mauser Plastic Industries Limited, Mandviwalla Building, Old Queens Road, Karachi-74000]. ******** C.No.5(141)STM/99 DATED 4 TH DECEMBER, 1999 SUBJECT:- TAX FRAUDS COMMITTED BY M/S KOHINOOR SMITH (PVT) LTD., LAHORE AND M/S SYED BROTHERS (DISTRIBUTORS) LAHORE. I am directed to refer to your letter C.No.4-PA.Misc/99/2, dated 29.11.1999 on the above subject and to convey that the Board appreciates your detection of evasion and advises you to finalize the investigations quickly and recover the dues expeditiously. 2. As regards M/s Syed Brothers, the supply of goods with 3% further tax is not permissible in case of supplies to registered persons. Moreover, receipt of goods with 3% further tax does not mitigate the requirements of a person (liable to registrations) to get registered and to fulfil all the obligations consequent to registration. Payment of 3% further tax is not in lieu of the offence of non-registration but is a tax for persons not liable to registration. The further supply of goods (received with 3% further tax) by a registered person will suffer sales tax @ 15% if supplied to registered persons and @ 18% if supplied to non-registered person, without any input tax credit. 3. Kindly intimate the results of your investigations and recovery efforts to CBR by 10.12.1999. [Issued by the CBR, Islamabad under the signature of Mr. Akhtar Zaman Khattak, Secretary (STM) addressed to Collector of SalesTax, Lahore. Copy to all the Collectors of SalesTax/Mirpur (AJ&K), Secretary (STP) and the Secretary (ST.Edu.),CBR.] ******** No.3(13)STP/96(Pt) DATED 6 TH DECEMBER, 1999 SUBJECT:- PURCHASE OF COTTON BY T.C.P. I am directed to say that it is learnt that you have obtained SalesTax Registration No.12-00-900-1119. You are advised to:- (v) (vi) (vii) receive taxable goods only from such persons as are registered under the SalesTax Act, 1990, and that too against prescribed tax invoices to be issued by such registered persons; supply/sell taxable goods against prescribed tax invoices only. For sale to persons, other than a registered person, a further tax of 3% is payable under section 3(1A) of the Act in addition to the standard rate of sales tax at 15%; submit monthly Return-cum-Payment Challan in any of the designated National Bank of Pakistan Branches and pay, after claiming permissible

(viii) SalesTaxInstructions, 2009 input tax adjustments, the sales tax charged and collected by you from the buyers; and comply with the requirements of the SalesTax Act, 1990, and the rules made thereunder. 2. Since the sales tax on ginned cotton is to be paid by TCP, the TCP is advised (in its own interest) to issue bank draft/pay order equal to the amount of sales tax involved in favour of the Collectors of SalesTax, separately for each Collector, having registration jurisdiction over the Ginners from whom purchases were made by you:- Name of Collector Has registration jurisdiction over Ginner whose registration number (as on invoice) begins with Collector of SalesTax Hyderabad 01 Collector of SalesTax Multan 04 Collector of SalesTax Faisalabad 08 Collector of SalesTax Lahore 03 3. While a separate Bank draft/pay order may be made for purchases from each Ginner, you may (at your convenience) preferably issue one consolidated Bank Draft/Pay Order, for each Collectorate, for each calendar month‘s purchase in such a manner that such a duly-crossed Bank Draft/Pay Order must reach the respective Collector of SalesTax alongwith enclosed proforma by the 10 th day of every month following the calendar month to which the purchases relate. If the T.C.P. fails to deposit the duly crossed Bank Draft/Pay Order within the due time it shall be liable for penal action as per provisions of section 33 and 34 of the SalesTax Act, 1990. 4. In case you find any problem or need any clarification, you may approach the concerned Collector of SalesTax for guidance. [Issued by the CBR, Islamabad under the signature of Mr. Zulfiqar A. Kazmi, Secretary (STP) addressed to Trading Corporation of Pakistan, Karachi. Copy to Secretary, Ministry of Commerce, Islamabad and Collectors of SalesTax, Hyderabad/Multan/Faisalabad/Lahore.] ******** DETAIL OF SALES TAX DEPOSITED BY T.C.P. DATE: _________ S.N o Name of Ginning Unit(s) from which cotton is purchase d Registr ation Numbe r of the Ginnin g Unit(s) Invoice Numbers and dates issued by the Ginning Units(s) Quant ity of cotton purch ased Value of cotto n purch ased Amo unt of sales tax @ 15% (1) (2) (3) (4) (5) (6) (7) (8) 1 2 No. of the Cheque/Draft/P ay Order and date (give bank and branch name also) with amount in words.